A new proposal introduced by House Budget Chairman Jodey Arrington aims to extend the traditional 30-day wash sale rule to most cryptocurrencies. Under current regulations, investors can sell digital assets at a loss and immediately repurchase them while still claiming tax deductions. The proposed legislation seeks to close that loophole by applying rules similar to those governing stocks and other securities. Supporters argue the change would create greater fairness in the tax system and generate additional government revenue. Critics contend that tighter regulations could reduce market liquidity and place additional compliance burdens on investors. The proposal arrives amid growing efforts by lawmakers to establish a comprehensive framework for digital assets in the United States. If approved, investors would need to carefully manage trading strategies around loss harvesting and portfolio rebalancing. Industry participants are expected to closely monitor the bill’s progress through Congress.